Fairlead Strategies’ Katie Stockton believes that it is “eerily quiet” in the crypto market right now, while BTC is falling along with Nasdaq and S&P 500
Speaking to CNBC host Joe Kernen on a recent episode of Squawk Box, Katie Stockton, founder and managing partner of Fairlead Strategies, said she believes the Bitcoin chart is broken and expects until the flagship crypto begins to decline along with the stock market.
“$27,200 is a likely support level”
The expert has referred to the crypto market as “eerily quiet” now, speaking about Bitcoin in particular.
Stockton said Bitcoin’s long sideways moves are fully capable of breaking the current support level. Citing technical Fibonacci levels, she named $27,200 as the likely level where Bitcoin could find the next support when it starts falling.
Besides, the founder of Fairlead Strategies pointed out a strong correlation between Bitcoin and the Nasdaq 100, and the S&P 500 indexes, which are going down at the moment, stated that Bitcoin should be considered a risky asset now as it may follow those stocks.
As for the stock market, she expressed the view that nothing positive to say in this market now on the technical analysis side.
Bitcoin drops to $38,870 after historic rate hike
On May 4, the Federal Reserve implemented a long-expected rate hike by half a basis point—the highest increase of interest rates in 22 years. On that day, Bitcoin first responded to this historic event with an almost 3% increase, showing stability and even small growth—to the $39,868 level.
However, today the leading cryptocurrency began to decline, erasing that gain and falling further. As of this writing, Bitcoin is trading at $38,802.
The Nasdaq composite index has fallen 3.37% today. The S&P 500 is down 2.51% today as well.
